- The price of OMG Network plunged to $1.85 after it was rejected at the $2.50 mark.
- Profit taking is likely to cause a 15% decrease, which could spell trouble for bulls.
- Technical indicators suggest that buyers should not remain at current levels, as they may retreat to the primary support level of $1.68.
The OMG Network has seen its price soar to its highest point since 2000 in recent months, peaking at $2.50 last week on major exchanges. The surge in value was attributed to the bullish sentiment and the uncertainty surrounding the banking industry. The coin has also seen a rise in prices despite the recent news of its delisting from Coinbase.
However, the OMG/USD has dropped more than 15% in the past day, with prices being more than 32% higher than they were seven days ago. At the time of writing, OMG was trading at $1.89. Bears have made some short-term gains, putting the bullish momentum at risk.
Daily Price Outlook for OMG
The OMG coin has seen a sharp decline in the last hour due to profit taking. According to the daily chart below, OMG’s failure to break the $2.50 resistance has caused it to fall back to $1.85 (data from TradingView).
The daily RSI is approaching the midline, which shows a decrease in the strength of buyers. To avoid further losses, bulls must maintain the $1.80 support level. If the bearish scenario continues, the OMG will likely slide back to demand zones at the 200 EMA (around $1.68). An additional anchor could be provided by the 50-day EMA at $1.56.
OMG Network daily price chart. Source: TradingView
Four-Hour Price Outlook for OMG
On the four-hour chart, OMG faces an old resistance level. For bulls to prevent further losses, they must stay above the highlighted orange zone at $2.00. As you can see, the 4-hour RSI is close to the midline, suggesting that bulls are trying to gain control of OMG trades and buy new contracts.
OMG price four-hour chart. Source: TradingView
Averting a fall into oversold territory is key. This could be aided by the MACD line not dropping further. The Histogram is slightly bearish, indicating that bears are still in control. If prices decline, bulls may try to protect the support area at $1.68.
A climb beyond $2.34 is likely to lead to an increase in bullish sentiment.
This was the OMG post price outlook Network CoinJournal: 15% dip amid profit taking.
